Skip to content

Blaming Each Others Financial Policies

From a Washington Post editorial:

ABOUT TWO weeks ago, Germany's finance minister described U.S. economic policy as "clueless." We don't want to sound childish, but after yet another bailout for an insolvent European country - about $137 billion for Ireland - we are inclined to ask: If the United States is clueless, what does that make Germany? The de facto leader of the crisis-ridden, 16-nation eurozone, Berlin has not performed its role brilliantly over the past year.

A good defense of German policy against US criticism of its "export-led growth model" can be found on Atlantic Community: Stop Lecturing and Do Your Homework, America!

Thomas Kleine-Brockhoff: America's argument about the Chinese currency manipulation may be valid but it is also a distraction. It is America's own lack of competitiveness that is hurting the US more than anything. America will be able to revive the credibility of its global economic leadership only when it stops blaming its democratic peers and instead starts doing its homework.

Trackbacks

No Trackbacks

Comments

Display comments as Linear | Threaded

Marie Claude on :

"If every country in the eurozone had kept its public finances in order, as the treaty requires - and as Germany does - there would be no problem. It is both wrong and counterproductive to reward the bad behavior of Greece et al and the speculators who enabled them. There must be no bailouts except in return for profound austerity measures that guarantee an end to the cycle of debt." except that there were exceptions for Germany in the past years, circa 2004, and for France... so one shouldn't have a short memory ! http://ftalphaville.ft.com/blog/2010/11/22/412116/irish-exposure-charted/ and Germany's exportations surplus is fluctuant, based on world demands and wealthiness http://seekingalpha.com/article/233796-political-turmoil-macro-uncertainty-and-the-ultimate-monetary-weapon " Please use the link to reference this article. Do not copy & paste articles which is a breach of FT.com's Ts&Cs (www.ft.com/servicestools/help/terms) and is copyright infringement. Send a link for free or email ftsales.support@ft.com to purchase rights. http://www.ft.com/cms/s/0/2becafc4-b398-11df-81aa-00144feabdc0.html#ixzz16DDr4V00 "If you look at the period since the beginning of the financial crisis, Germany’s economic performance has been dismal. If you compare levels of gross domestic product between Germany and the US since the crisis, you find the US significantly outperformed Germany during that period" http://www.ft.com/cms/s/0/2becafc4-b398-11df-81aa-00144feabdc0.html#axzz16DD6OCr6 I'm in use to surf on different countries blogs, and actually in vacation in Spain, people see the problem from their own perspective, here, they say that that's the other EU countries that have a problem... and not them ! The euro was set too early, or rather some countries shouldn't have joined the eurozone

Marie Claude on :

uh, sorry about this adding: "Please use the link to reference this article. Do not copy & paste articles which is a breach of FT.com's Ts&Cs (www.ft.com/servicestools/help/terms) and is copyright infringement. Send a link for free or email ftsales.support@ft.com to purchase rights. http://www.ft.com/cms/s/0/2becafc4-b398-11df-81aa-00144feabdc0.html#ixzz16DDr4V00" it's independant from my will

Joe Noory on :

America is lecturing you? Actually, people with more to gain from German government action in the rest of the Eurozone are the ones lecturing. Seriously.... Where were people using personal terms as though nations had two arms, two legs, and a penchance to snore? Nations aren't human. The question is if we're going to use adolescent teminology, [url=http://observinghermann.wordpress.com/2010/11/23/whos-clueless-now/]who's clueless now[/url]? Just like the bufoon in Deutschland who thought conflating one quarter of GDP data for the year was news (not quite realizing that those quarterly figures are already anualized), you have to seek information and common sense from your readers. Preciently already said: [i]"and Germany's exportations surplus is fluctuant, based on world demands and wealthiness"[/i] ...which is the only reason German "pundits" were lecturing anyone 3 months ago - they had a good run selling German stuff because as exporters, their prospects for economic growth depend entirely of Forex rates. It's also in a decaying orbit that has resorted to selling fewer final goods, and more machinery with which asians undercut the saleswothiness of Germany's and Europe's goods. It's exceedingly worse that being "addicted to oil" or whatever pin they're sticking in their voodoo dolls this week, when you can't even influence the value of your currency too. So seriously... who's been hit with [i]the clueless stick[/i] lately? Besides, that "brilliant role" they play is limited in scope. Germans have no leverage nor are they asked to smoothen the tides of the global economy. Their portfolio is, even now as we can see, Germany. Compared to the US it's as basic as running a lemonade stand - so spare your lectures (about who's lecturing whom) for the people who actually lecture the Germany econo-rati. The only reason you're directing that invective at the US, is because there is a large enough media envoronment to actually let you find the commentary you're looking for, rather than a small coterie of "experts" writing and speaking to an even smaller coterie of magazines, journals, and broadcasting outlets.

Pat Patterson on :

Let the foot dragging begin. While some in the US criticize Germany's economic model, though most Americans actually envy the Germans and admire them for sticking to their policies, the Europeans seem intent in not only keeping the drumbeat going but also admitting that Germany is somehow responsible for the bulk of these stimulus or bailout funds. It's odd to see a chorus of European political operatives rise in a chorus singing that Germany is greedy but at the same time demanding that they bailout the same politicians for mistakes they even now won't acknowledge or stop. http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8160999/EU-rescue-costs-start-to-threaten-Germany-itself.html

Marie Claude on :

"It's odd to see a chorus of European political operatives rise in a chorus singing that Germany is greedy but at the same time demanding that they bailout the same politicians for mistakes they even now won't acknowledge or stop." Germany isn't alone to bail out failing states, but she is the one that contested the un-constitutional fact in her court. Also as a proeminent EU state, what Germany says is Gospels in Brussels

Pamela on :

Well apparently, the EU Parliament got an earful yesterday from Nigel Farage. "Just who the hell do you think you are?" indeed. ------------------- Good morning, [EU Council president] Mr. [Herman] Van Rompuy. You've been in office for one year, and in that time the whole edifice is beginning to crumble, there's chaos, the money's running out, I should thank you - you should perhaps be the pinup boy of the Euroskeptic movement. But just look around this chamber this morning, look at these faces, look at the fear, look at the anger. Poor [José Manuel Durão] Barroso [president of the European Commission] here looks like he's seen a ghost. They're beginning to understand that the game is up. And yet in their desperation to preserve their dream, they want to remove any remaining traces of democracy from the system. And it's pretty clear that none of you have learned anything. When you yourself Mr. Van Rompuy say that the euro has brought us stability, I supposed I could applaud you for having a sense of humor, but isn't this really just the bunker mentality. Your fanaticism is out in the open. You talk about the fact that it was a lie to believe that the nation state could exist in the 21st century globalized world. Well, that may be true in the case of Belgium who haven't had a government for 6 months, but for the rest of us, right across every member state in this union, increasingly people are saying, "We don't want that flag, we don't want the anthem, we don't want this political class, we want the whole thing consigned to the dustbin of history." We had the Greek tragedy earlier on this year, and now we have the situation in Ireland. I know that the stupidity and greed of Irish politicians has a lot to do with this: they should never, ever have joined the euro. They suffered with low interest rates, a false boom and a massive bust. But look at your response to them: what they are being told as their government is collapsing is that it would be inappropriate for them to have a general election. In fact [EU Economic and Monetary Affairs] Commissioner [Olli] Rehn here said they had to agree to a budget first before they are allowed to have a general election. Just who the hell do you think you people are? You are very, very dangerous people indeed: your obsession with creating this European state means that you are happy to destroy democracy, you appear to be happy with millions and millions of people to be unemployed and to be poor. Untold millions will suffer so that your euro dream can continue. Well it won't work, 'cause it's Portugal next; with their debt levels of 325 percent of GDP they are the next ones on the list, and after that I suspect it will be Spain, and the bailout for Spain will be 7 times the size of Ireland, and at that moment all the bailout money will [be] gone - there won't be any more. But it's even more serious than economics, because if you rob people of their identity, if you rob them of their democracy, then all they are left with is nationalism and violence. I can only hope and pray that the euro project is destroyed by the markets before that really happens. --------------- There's a video at this link http://www.powerlineblog.com/archives/2010/11/027768.php

Joe Noory on :

This is just another one of those passive-aggressive, self-indulgent, yet boringly recurring continental arguments that are constantly regurgitated by Europeans to prop up their self-regard. Ask yourself this: how could Germany have "an export led growth model" without the US as an importer? http://medienkritik.typepad.com/blog/2004/11/german_governme.html

Add Comment

E-Mail addresses will not be displayed and will only be used for E-Mail notifications.

To prevent automated Bots from commentspamming, please enter the string you see in the image below in the appropriate input box. Your comment will only be submitted if the strings match. Please ensure that your browser supports and accepts cookies, or your comment cannot be verified correctly.
CAPTCHA

Form options